Post by
tradersam99 on Oct 31, 2020 4:20pm
Did they just place a Cap on the ABL amount?
The press release states that 50% of the ABL proceeds must go to repayment of the dentures, and 50% will go to working capital for the Company.
So, looking at that, here's my point: If 50% MUST go to loan repayment, and the Other 50% Will go to the Company, then that presumably puts a cap onthe ABL amount to no more than twice the debenture amount, or around $26 Million ($13 mil loan, $13 mil to company).
It doesn't mean they can't make the ABL LESS than that, but it would seem to mean it will not be MORE, because if, say, it were $50 Million, then 50% could NOT go to the loan, as that would be far too much. Remember, it says 50% would go toward repayment, not around 50% or close to 50%...it says exactly 50%.
So, is that a cap on the ABL amount of two times the loan?
"The term sheet also provides that the Debentures shall be amended to allow the Company to conduct patent sales or patent secured debt financings without approval of the debentureholders provided that the Company uses 50% of the net proceeds received from such sales or debt financings towards the pro rata repayment of the principal amount of the Debentures and accrued and unpaid interest on such amount with the remaining 50% applied to working capital of the Company."